In legal terms, Wikifolio certificates are debt securities issued by the Lang & Schwarz Aktiengesellschaft (L&S). By purchasing a certificate, investors become creditors of the issuer. This means that there is a fundamental Issuer risk, i.e. the risk of insolvency of the issuer.
To hedge this risk, L&S has set up a Contractually agreed collateralisation solution introduced. All securities and cash accounts held to fulfil the obligations arising from outstanding Wikifolio certificates are pledged. An independent trustee regularly monitors the collateral. This protects investors against the issuer risk Largely secured.
A detailed analysis of issuer risk - including how collateralisation works, possible scenarios and risk dimensions - can be found in the detailed deep dive. 👉 To the deep dive: Issuer risk
Trade and transparency
- Wikifolio certificates are traded exclusively on the Stuttgart Stock Exchange (EUWAX) traded.
- Neither wikifolio.com nor the traders receive investor funds; the issuer is L&S alone.
- The collateralisation solution is free of charge for investors and increases the security of the investment
Quarterly assessments
In addition to the official regulations of L&S and wikifolio.com I publish Quarterly personal assessments on the current risk situation. These analyses serve as additional guidance and are provided in the appendix. They do not replace the official information from L&S or wikifolio.com, but supplement it with an independent perspective.